The Creditors, 1770650 Ontario Inc. and 1062484 Ontario Inc., brought a motion under Rule 60.08(16) of the Rules of Civil Procedure to determine their entitlement to proceeds from a professional liability insurance policy issued by Lawyers’ Professional Indemnity Company (LawPro) to the Debtor, Paul McEnery, a disbarred lawyer.
The motion sought an order for LawPro to pay out policy proceeds to satisfy outstanding debts.
The issues were whether the $500,000 sublimit for dishonest acts was per claim or in aggregate, and whether LawPro had improperly eroded the policy limits through defence costs.
The court found the $500,000 sublimit was an aggregate limit and that LawPro had not eroded the policy limits, dismissing the Creditors' motion.